NEW YORK, NY / ACCESSWIRE / February 13, 2018 / Shares of defense contractors have been on the rise as President Trump recently signed the 2019 budget which allows $700 billion for the Department of Defense. He said, "We're going to have the strongest military we've ever had, by far," Trump said. "In this budget we took care of the military like it's never been taken care of before." Shares of CSRA exploded to a new high after Wall Street learned that General Dynamics will be purchasing the company for nearly $10 billion.

RDI Initiates Coverage on:

CSRA Inc.
http://www.rdinvesting.com/report/?ticker=CSRA

General Dynamics Corporation
http://www.rdinvesting.com/report/?ticker=GD

CSRA Inc. shares exploded on Monday, closing the day up 31.05% on nearly 44 million shares traded. The stock soared to a new high of $40.58 after traders learned that the company will be acquired by General Dynamics, a military contractor, for $6.8 billion in cash plus $2.8 billion acquired in debt. The company is paying $40.75 per CSRA share and will fund the deal via available cash as well as new debt financing. General Dynamics head of information systems and technology, Daniel Johnson, stated, "An increasing budget going forward gives us cause for optimism that the services market is going to come back to pre-2011 characteristics."

Access RDI's CSRA Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=CSRA

General Dynamics Corporation shares closed down 1.21% on Monday with trading volume almost double compared to the usual. Despite the loss, the company had big news to start the trading week, announcing that it would be acquiring CSRA Inc. in a $9.6 billion deal. As part of the deal, General Dynamics will begin a cash tender offer to purchase all outstanding CSRA common stock for $40.75 a share. The company will be paying $6.8 billion in cash and $2.8 billion in debt. With this acquisition, it would create the second-largest government IT and professional services company trading in the market. CEO of General Dynamics, Phebe Novakovic remarked, "CSRA's management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins. We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies. The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers." The deal is still subject to regulatory approval and is expected to close in the first half of this year.

Access RDI's General Dynamics Corporation Research Report at:
http://www.rdinvesting.com/report/?ticker=GD

Our Actionable Research on CSRA Inc. (NYSE: CSRA) and General Dynamics Corporation (NYSE: GD) be downloaded free of charge at Research Driven Investing.

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